Research: Nord Stream 2 will make Germany an energy hub

According to a joint study by Ewi Energy Research and the European Center for Energy and Resource Security (EUCERS), gas supplies to the EU will soon change dramatically as European gas production declines. The study says the EU has several options for the next 20 years to diversify its gas imports.

The study focuses on key players, including Russia and Turkey, who are expected to have a significant impact on the European future of natural gas. Also, the availability of alternative sources of natural gas and the growing ability to import liquefied natural gas (LNG) create favorable conditions for increased competition. The EU's internal market could benefit from further progress in market integration, in particular through investments in infrastructure that combines the highly liquid Northwest European gas market with markets in Southern and Eastern Europe, according to the study.

The decline in European gas production will be largely replaced by Russian gas, which remains one of the main sources of gas supplies to the EU. But LNG imports will more than double by 2035. In this context, Gazprom's pricing strategy is critical. Only if Gazprom adopts a competitive pricing strategy can it continue to deliver high gas exports to Europe.

The construction of Nord Stream 2 could make Germany the main transit country for Russian gas and the main gas center in Europe. Nord Stream 2 will be accompanied by the construction of new capacities in the form of pipelines between Germany, the Czech Republic and Slovakia. This would allow an increase in supplies to the countries of Eastern Europe with the participation of Russian and non-Russian gas.

In addition, the expansion of gas imports is flattening along the Southern Corridor, which proclaims Turkey's future role as an energy transit country. Such a role, however, could be affected by Ankara's tensions with the EU and its surroundings.